TBLI Research

European Expert Group. Public-Private Platform for an Enhanced Co-operation on

Sustainable Investments.

By Raymond Van Ermen

European Partners for the Environment (EPE)

[email protected]

A Public – Private Partnership in view of an Enhanced Co-operation for Sustainable Investment in the field of

Eco-technologies & eco-innovation

France The Netherlands

Spain

Other countries

E.T.A.P.Environmental Technologies Action Plan

Sponsors

In Support of

Developed by

www.epe.be/sustinvestments

The platform is a place of dialogue and co-operation on the ways and means to cultivate a demand and tailor products meeting the needs in terms of eco-

innovation, eco-efficiency and sustainable management of natural resources.

A Growing Interest:

The platform addresses “financial leverages” in support to eco-innovation projects meeting the priorities as fixed by the European Council (March 2005)

The project should anticipate a major increase of the demand for “green investments”The increase of demand is expected as a consequence of

- An increase of “green procurement”

- More “eco-innovation” supply chain guidelines

- More citizens interested in responsible investments

- The launching of a new EU Program by 2007

A Major Evolution of the Business Agenda

The emergence of more integrated asset management systems, including both quantitative and qualitative elements of investment possibilities across asset classes, requires new outreach opportunities to establish public/private partnerships that further drive these trends into mainstream practice.

A Consortium

The programme is developed under the responsibility of a Steering Committee and implemented by a consortium of organisations combining their expertise:

• Eurosif• Triple Bottom Line Institute• Regional Environment Centre• Fundacion Entorno• Oree• European Partners for the Environment.

The Program• Expand the mapping of ‘good practices’ and joint reflection on lessons and proposals at European level. • Analysis of the demand/ financial instruments for specific sectors where eco-innovation has a key role to play as the one covered by the EU ETAP Programme. • Develop an awareness campaign and a dialogue on needs and problems faced with local authorities, SME’s, farmers and civil society promoting eco-innovation and preparation of the CIP launching by 2007.

Mapping by TBLI

The landscape of governmental and multi-lateral sustainability initiatives evolves rapidly within the European Union, with new programs, initiatives and funding opportunities regularly appearing. Many local and regional authorities, national governments, and multi-lateral organizations (such as the EU and UN) issue such initiatives, with many programs involving multiple players on a variety of levels.

Sadly, there are very few single sources to obtain such information in order to determine the overall landscape of sustainability initiatives. Often, information clearinghouses offer services of a limited scope, and much of it out of date. Moreover, determining which of these programs offer best practices and easily replicated models is particularly challenging.

The Platform is addressing:

• New “tools” for the EU Member States: new "products" and "services" put at the disposal of the clients in the field of green and/or sustainable investments, including in it, the people now excluded from the banking structure (5 million in France)• New "levers" at the level of the European Union: new initiatives taken by the Ministers of Finance of the Member States with reinforced co-operation or by the Council of Ministers of Finance, the European Investment Bank, the

Commission• A strategy to create a ‘mass critique’ effect due to the new synergies at European level in support to Resource Efficiency.• An initiative with local governments and local banking agencies to support the "greening" of investments

EU Instruments

The Environmental Technology Action Plan action 7 “improving the financing of environmental technologies”, and action 25 “promoting responsible investments in developing countries and countries in economic transition” refer to “Market penetration for existing and future eco-efficient innovations.

ETAP is now fully integrated in the Lisbon Agenda. Some of its Actions are:

- Improving the financing of environmental technologies by introducing enhanced funding and risk sharing mechanisms

- Review of state aid guidelines and environmentally harmful subsidies

- Encouraging procurement of environmental technologies

- Promotion of environmental technologies and responsible investments in developing countries and countries in economic transition

CIP- Entrepreneurship and Innovation Programme

The C.I.P. has a budget of € 4.213 billion for the period 2007 – 2013. The C.I.P. will support actions that develop the capacity of enterprise and industry to innovate. It includes € 150 million for support for venture capital funds active in the field of eco-innovation, and €370 million to pilot projects, networks and other measures.

“The Entrepreneurship and Innovation Programme will address persistent recognized market gaps leading to poor access to equity, venture capital and loans for SMEs, through Community Financial Instruments operated on behalf of the Commission by the European Investment Fund (EIF), the Community’s specialised institution for providing venture capital and guarantee instruments for SMEs.

The E.I.B.

A third of EIB’s individual loans in Europe are to go towards environmental projects. In 2003, 149 environmental projects were directly financed by the EIB with € 12.3 billion of individual loans.

The EIB is giving increased support to encourage renewable energy investment as a contribution to the EU energy policy and the Climate Change program.

The GREFF

The European Commission is sponsoring the development of an innovative public-private mechanisms to enhance access to affordable risk capital by renewable energy business and project developers. The GREFF should help closing the financing gap for developing renewable energy markets and services world-wide.

A first closing of € 75 million is targeted for 2006.

Green Investments Platform.

Meetings to come:

Brussels. December 15th, 2005. Public-Private Partnerships initiated by Member States.

Brussels. February 2006. Presentation of a Preliminary Report to Member States and Banks participating in the process.

Lyon. March 2006. European Workshop with European Regions . ‘Cultivating the demand for green investments’ launching a series of meetings in European Regions in view of preparing projects in the framework of the C.I.P. Programme.

Further information

Raymond Van ErmenEPE Executive Director

[email protected]: +32 2 771 15 34

www.epe.be